Dropbox (DBX) Downgraded by Zacks Investment Research

Zacks Investment Research cut shares of Dropbox (NASDAQ:DBX) from a buy rating to a hold rating in a research note issued to investors on Wednesday morning.

According to Zacks, “Dropbox, Inc. is a service company. It offers a platform which enables users to store and share files, photos, videos, songs and spreadsheets. Dropbox, Inc. is headquartered in San Francisco, California. “

DBX has been the subject of a number of other research reports. Jefferies Financial Group boosted their target price on Dropbox to $37.00 and gave the stock a buy rating in a research report on Friday, August 10th. Royal Bank of Canada raised Dropbox from a sector perform rating to an outperform rating and set a $33.00 target price for the company in a research report on Friday, August 10th. JMP Securities boosted their target price on Dropbox from $35.00 to $37.00 and gave the stock an outperform rating in a research report on Friday, August 10th. Monness Crespi & Hardt started coverage on Dropbox in a research report on Monday, August 27th. They issued a neutral rating for the company. Finally, Canaccord Genuity boosted their target price on Dropbox from $36.00 to $38.00 and gave the stock a buy rating in a research report on Friday, August 10th. Five equities research analysts have rated the stock with a hold rating and ten have issued a buy rating to the stock. The stock currently has a consensus rating of Buy and a consensus target price of $33.93.

Shares of DBX stock opened at $22.35 on Wednesday. Dropbox has a 12 month low of $19.54 and a 12 month high of $43.50. The company has a quick ratio of 1.43, a current ratio of 1.43 and a debt-to-equity ratio of 0.13.

Dropbox (NASDAQ:DBX) last announced its quarterly earnings results on Thursday, November 8th. The company reported ($0.01) earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.06 by ($0.07). The firm had revenue of $360.30 million during the quarter, compared to the consensus estimate of $352.74 million. Dropbox had a negative return on equity of 158.23% and a negative net margin of 38.83%. The company’s revenue for the quarter was up 25.7% on a year-over-year basis. As a group, analysts expect that Dropbox will post -1.06 earnings per share for the current year.

In other news, General Counsel Bart Volkmer sold 8,606 shares of the company’s stock in a transaction dated Friday, September 21st. The shares were sold at an average price of $26.58, for a total transaction of $228,747.48. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Timothy Regan sold 1,000 shares of the company’s stock in a transaction dated Wednesday, September 19th. The shares were sold at an average price of $26.53, for a total transaction of $26,530.00. The disclosure for this sale can be found here. Insiders have sold a total of 216,698 shares of company stock valued at $5,639,536 in the last ninety days.

Large investors have recently made changes to their positions in the stock. Trustcore Financial Services LLC grew its stake in shares of Dropbox by 702.0% during the 2nd quarter. Trustcore Financial Services LLC now owns 4,010 shares of the company’s stock valued at $130,000 after acquiring an additional 3,510 shares during the period. First Hawaiian Bank bought a new position in shares of Dropbox during the 3rd quarter valued at approximately $118,000. Legal & General Group Plc bought a new position in shares of Dropbox during the 1st quarter valued at approximately $158,000. C M Bidwell & Associates Ltd. grew its stake in shares of Dropbox by 85.2% during the 3rd quarter. C M Bidwell & Associates Ltd. now owns 5,085 shares of the company’s stock valued at $136,000 after acquiring an additional 2,340 shares during the period. Finally, Covington Capital Management bought a new position in shares of Dropbox during the 3rd quarter valued at approximately $161,000. Institutional investors own 20.18% of the company’s stock.

About Dropbox

Dropbox Inc provides a collaboration platform worldwide. Its platform allows individuals, teams, and organizations to create, access, and share content online. The company was formerly known as Evenflow, Inc and changed its name to Dropbox, Inc in October 2009. Dropbox Inc has strategic partnership with Zoom Video Communications, Inc Dropbox Inc was founded in 2007 and is headquartered in San Francisco, California.

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